Greens seek carbon compromise

LABOR and the Greens have cut a deal on some of the biggest sticking points in the negotiations over a carbon price, leaving only a few details to work out before an announcement in the next two weeks.

The Age understands the parties have reached agreement on the vexed issues of compensation for coal miners and coal-powered electricity generators, and how to proceed if Parliament rejects the government's preferred ambition for a carbon price and emission cuts.

The deal came as Greens leader Bob Brown said his party would use its position in the Senate - where it will hold the balance of power from July 1 - to block attempts by Opposition Leader Tony Abbott to dump the carbon price if the Coalition wins the next election.

''I can give you a rolled-gold guarantee that when and if this package - after all this work on behalf of the Australian people - passes this Parliament we will be giving it every guarantee for the future,'' Senator Brown said.

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He also conceded the carbon price deal was ''never going to be a Green outcome''. ''But it is nation building and it's essential,'' he said.

While the parties have come together on some major sticking points, it is unclear whether a deal on the starting price for the carbon tax has been reached or an overall final agreement has been signed off by members of the multi-party committee that has been negotiating a deal in recent weeks.

The committee is expected to meet again over the next week to hone the final design of the carbon price and ensure any deal will hold up between the parties ahead of an announcement.

While tensions in the negotiations flared between Labor and the Greens earlier this month, it is understood the situation has improved in recent weeks with the increased presence of Prime Minister Julia Gillard and Senator Brown in the talks.

In recent developments, a package of compensation for coal miners - opposed by the Greens at first - will be included under a carbon price but will differ slightly from the $1.5 billion that was proposed by the government under its former emissions trading scheme.

Assistance for coal-fired electricity generators is also expected to include a power plant buyout, but over an extended transitional period. Direct compensation for generators over the transitional period is likely.

Labor and the Greens have also closed the gap on what insiders considered the most divisive issue between the two parties - the ambition of the scheme in the case of deadlock between the government and Parliament.

The government has proposed establishing an independent committee to make recommendations on the emissions caps and pathways of a carbon price.

Up until recently Labor and the Greens have been deeply divided on what fallback position would be in place if the government and Parliament disagreed on the committee's advice.

In that event Labor wanted the scheme to revert to an unconditional 2020 emissions reduction target of 5 per cent, while the Greens want no target to be in place.

But that divide appears to have closed in recent weeks with yearly reviews of the carbon price's caps by the independent committee now on the table if the government and Parliament disagree.

The government has recently told stakeholders that legislation will enter the House of Representatives in August, but it does not expect it to be voted on in the Senate until October or November.

195 comments

Wow. I got those body tingles when I read this. Finally something is being done about the impact we as humans and Australians are having on the Environment. Julia - you've impressed me greatly today and you'll go down in history in my mind as the only one with the guts to do something positive about sustainability in Australia, regardless of your potentially 'popularity' decline. Congratulations!!

Commenter

Gemma

Location

Melbourne

Date and time

June 30, 2011, 8:26AM

Gemma from Melbourne... Can you explain to me in laymans terms how a tax will solve global warming, or at the very least, actually help reduce carbon emissions?

Commenter

Kevin

Location

Dennis

Date and time

June 30, 2011, 8:34AM

Right, so the Greens and Turncoat Juliar agree to a scheme. Where's my say in this? Or don't the views of the Australian public count for anything anymore?

Commenter

David

Location

Sydney

Date and time

June 30, 2011, 8:35AM

world hasn't warmed in 10 years - even when China has come online (masses of new poluting cars\trucks, a vast number of new coal fired power stations). the theory of global warming was that the world would warm due to more carbon dioxide emissions - as at 2011, theory disproven. Say goodbye to your Liberal tax cuts for individuals, and more socialist Labor taxation for middle-income households buckling under the weight of a much higher cost of living. When will people ever learn, when you vote Labor - the cost of living skyrockets. Now it's time to pay the piper.

Commenter

macca

Location

melbourne

Date and time

June 30, 2011, 8:36AM

Congratulations to Julia, Bob and company. It just shows no one person has all the wisdom and co-operative approach is the democratic way to advance a Great Nation, not confrontation and inaction. What's Abbott next move? Pick up the phone and ring Rupert, Clive or even Johnny for more advice.It has been however disappointing that more Aussies are not willing to pay to contribute to a better and healthier world for their children. This is just a small step for Australia but hopefully a giant leap for the World.

Commenter

Power of Compromise

Date and time

June 30, 2011, 8:38AM

And Bob Brown gives another reason why Greens should be eliminated. Political blackmail (threatening to block any reversal attempt) is a completely disgusting attitude to take. Who the hell made you God, Bob?

Commenter

Dale

Location

At my desk

Date and time

June 30, 2011, 8:41AM

Kevin | Dennis - June 30, 2011, 8:34AM

Industries that are carbon intensive are deterred, industries that are low carbon emitters are preferred. Simple enough?

Forget the 'We hardly contribute to the overall effect' arguments, Australians are still one of the highest emitters per capita in the world.

Commenter

We snooze, we lose

Location

Australia

Date and time

June 30, 2011, 8:44AM

The greens are are flexing their muscles now. What's scarry is that these party have little to no economic policy, how can you make decisions on something you do not know. They want a high price on carbon, no details, no policy, no details about the compensation package that they are pinning their hopes on. I do not think that they will not be able to fulfill the compensation package as it will not be enough to go around. A the end of the day, everything will go up in price, and families already struggling with cost of living pressures will be force out on the street. And will Bob Brown take responsibility? That is the big question for this party, being able to face voters and take full responsibility for their decisions. Gilliard has lied and misled the public before the elections, she has miscalculated badly on the the release of details, what do you think will happen when they cannot meet the compensation package? There is a lack of accountability coming from the government and when she uses the excuse of the executive office of the PM, that shows complete disregard for the voters who put her there. Bob Brown and Julie Gillard can be seen as arrogant emperors. I hope we can vote and show them people power and hopefully they get routed.

Commenter

JTai

Date and time

June 30, 2011, 8:44AM

Great news - Well done Julia and Bob - And only 1 more day until the Greens get the Balance Of Power this country -finally we are being dragged out of the dark ages and into the future. We are finally seeing some strong action on Climate Change and lets hope there is more to come like strong improvements in the living standards of Aboriginal people , the humane treatment of refugees and the end of the Nuclear Industry- Go Get Em Bob and the Green Crew - You will always have my Vote - A party with real ticker!

Commenter

Balance Of Power

Location

Melbourne

Date and time

June 30, 2011, 8:45AM

There is of course NO compensation for the individual tax payer as taxable money is a never ending resource from a limitless guiltless well of free money.